Question

On 1st January 2013 a limited company issued 10,000 equity shares of Rs. 500 each at a premium of

Rs. 180 per share. The payment on these shares was to be received as follows: Rs, 160 (including Rs.
40 for premium) on application Rs. 250 (including, Rs. 80 for premium) on allotment Rs, 150

(including Rs. 60 for premium) on first call and Rs. 120 on Final call. All the shares were applied for

and amounts of all installments were, received in due course of time. Pass Journal entries and

prepare necessary ledger accounts and balance sheet in the books of the company.​

Answer 1

Answer:

16,500

Equity share capital A/c Dr(400*100) 40,000

To Share forfeiture account (400*75) 30,000

To calls in arrear account (400*25) 10,000

(Being share forfeited)

Bank A/c Dr.(300*80) 24,000

Share Forfeiture A/c Dr 6000

To Share capital A/c 30,000

(Being shares forfeited re-issued)

Shares forfeiture A/c Dr (30,000-6000) 16,500

To Capital Reserve A/c 16,500

(Being balance in share forfeiture account transferred to capital reserve)